The proposed rate increases and their correlation to the city's $295 million subsidy of the downtown sports and entertainment complex were highlighted Friday in the ongoing court battle over the financing agreement.

Three Sacramento residents claim the city misrepresented the deal and are providing an illegal gift of public funds to the Sacramento Kings franchise owners.

In a court hearing, the attorneys for the plaintiffs asked a judge to make a ruling that would ensure parking rates aren't increased to pay for the Kings new downtown home.

Attorneys for the city argued Sacramento's agreement was changed so that parking money is no longer being used for the the arena.

"They are simply going to pay for their authorized purpose and other monies in the general fund -- which are at the city's discretion -- will then be free to pay for debt service. So petitioners are simply trying to create a red herring," said Dawn McIntosh, an attorney hired by the city.

The plaintiffs' attorneys said the city is playing a shell game with the parking revenue.

"Well that's just money laundering," said Patrick Soluri, an attorney for one of the plantiffs, Isaac Gonzalez. "That's money laundering through the general fund."

At the hearing, the city's attorney argued Gonzale, couldn't sue the city because his name isn't listed on a property deed in Sacramento.

Gonzalez's attorneys said his wife's name is on the deed of their home and they both pay property taxes.

"It has no legal significance," said Soluri. It's only goal is to embarrass and harass Isaac and it's shameful."

Soluri said regardless, there are two other people listed on the suit.

The judge has not issued a final ruling on which issues will be allowed to proceed.

The next court hearing is set for December. By then, much of the Downtown Plaza where the new arena is planned will have been demolished.